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Saturday, December 15th

Is The Commercial Market Falling Apart?



For a year or more I have been noticing some changes in the local commercial marketplace. Although hard data for small retail buildings is hard to come by it has seemed that small neighborhood strip centers were becoming more and more difficult to lease and vacancy rates were increasing.

For several months I have heard grumbling among commercial property owners over the difficulties of leasing space and have seen centers constructed only a year or two ago go into foreclosure. Yet, sale prices continue to climb.

Commercial land values have certainly held their own. I have seen recent sales in excess of $20 per square foot of land in both Clayton County and Henry County, almost unheard of on Atlanta's southside. But more and more I have felt like the market was ready for a correction.


Chris on 2007-12-15 @ 10:50 AM EST [more..]



Monday, December 10th

Community Youth Benefit a Winner!



It was a last minute idea. Pastor Scott Kirschner wanted to hold a run to benefit the Community Christian School's cross country team and the Community Bible Church's youth ministry. They had only weeks to plan when they really needed months, but they gave it a shot and hit the bullseye!

Quite frankly, I felt that they would be lucky to have 30 or 40 participants and being right here at Christmas, I was certain it would be difficult to obtain sponsorships.

I was wrong!

It started out slow, but as word spread registrations started pouring in. In the end, there were almost 100 registered participants in the 1st Annual Community Youth Benefit 5k run and 1 mile fun walk. It was a great time for all!

Brande Bradford & Megan Kennington Enjoying the Activities

Brande & Her Daughter Megan


Chris on 2007-12-10 @ 06:25 PM EST [more..] [No Comments]


* * *

The Foreclosure Effect



The average single family residential sales price is down. In some areas as much as 15% or more off what it was a year ago. But this does not mean that if you place your home on the market for sale, you will receive 15% less than what you would have a year ago. (While 15% is not a universal number, I will use it as such for the purpose of this post.)

The assumed 15% is an average. It is the sum of all sales divided by the number of sales. It includes all sales, including the resale of foreclosed properties.

For Sale: Bank OwnedForeclosed properties do not typically sale at or even near market value. There are several reasons for this. First, lenders are not in the real estate business. They are in the loan business. They make their money by loaning money, not by holding a wasting asset. When they foreclose on a house, they want to turn it as quickly as possible to free up those funds so that they can make money loaning the money to someone else.


Banks also face regulatory issues. Bank examiners, at least in Georgia, push banks to sell foreclosures quickly. A bank with a lot of REO properties on their books faces tough regulartory evaluations and can even face stiff penalties.

Chris on 2007-12-10 @ 10:46 AM EST [more..]



Thursday, December 6th

Great News for the Small Multi-Family Marketplace



Conventional logic says that since many people are losing their homes that the rental market should be better. Thus, the value of small rental properties should increase although the value of single family residential homes are decreasing significantly. Is this proving true?

Small rental properties can be very difficult to compare. The interaction between buyer and seller is skewed by the interaction between seller and tenant. The buyer is buying rental income, not so much bricks and mortar. Although the physical attributes plays a part in the sales price, their most significant influence comes from its effect on rental rates, not on buyer preferences.

GRM May Indicate Great Rental Market


2006 Small Multi-Family Gross Rent Multipliers One of the best benchmarks for small rental properties is Gross Rent Multiplier (GRM). GRM is the relationship between sales price and monthly or annual rents. For the purposes of this post, I am utilizing annual rents to estimate the Gross Annual Multiplier (GAM). To determine GAM, you simply divide the sales price by the gross annual rents. Very simple.
GAM gives you a number which to compare all small income producing properties regardless of the number of rental units involved. The higher the GAM, the higher the sales price in relationship to the rents, hence the higher the relative value.
Chris on 2007-12-06 @ 02:01 PM EST [more..]



Monday, December 3rd

Art Contest Decided by the Flip of a Coin


We should have known better than to have four judges, laughed Brande Bradford when a number of entries were tied for placement in the Community Christian School (CCS) First Annual Art Contest. Brande, her husband Chris, along with Kirk and his wife Terry served as representatives of Bradford Realty Group judging the event.

One of the winning entries! The art contest, sponsored by Bradford Realty Group, was established to encourage students to develop their artistic abilities and utilize creative thinking processes as well as highlight the efforts of CCS in promoting the arts and the artistic development of their students.

The four judges closely inspected all of the entries, making notes of the ones they felt demonstrated good artistic and creative abilities in the child's individual manifestations of the contest themes  Since this was a contest to judge the efforts of the children, entries which clearly exceeded the abilities of the age group were excluded from consideration. 

At the end of the judging they compared notes. In the three occasions where their were ties, placement was decided by the flip of a coin.

The older winners gleamed with pride and the younger winners bounced with excitement as they received their awards. Each first, second and third place winner in the three categories received a trophy for their outstanding effort.

One second grade third place winner exclaimed "I have been in school three years, and this is the first time I have won anything!" The names of the winners are being withheld for privacy reasons.

"I was surprised by the amount of talent exhibited by these children and the effort each one of them put into their renderings. Every entry deserved a First Place trophy. These kid's parents have a lot to be proud of." said Brande upon awarding the trophies.

Kirk Bradford Reviewing Entries

Kirk Bradford Reviewing Entries

Entries were displayed on the 2nd floor of the atrium at Community Bible Church. CCS and Bradford Realty Group hopes the community will join with them in acknowledging the efforts of these fine students. For more information about this or other CCS events, contact Holly Phillips, Advancement Coordinator at 678-432-0191.


Chris on 2007-12-03 @ 04:47 PM EST [link]



Sunday, December 2nd

Mixed Reviews for South Metro Atlanta


In the month of November, Fayette County showed some improvement over October in regards to average home sale prices. Fayette County has taken a hard hit during the current "Credit Crisis", which might be confusing to some since many wrongly assume it was only the buyers of modest homes that were taking out sub-prime loans.

The problem with comparing "average" sales prices in a slow market is a few unusually high or unusually low sales can skew all of the numbers so that they are essentially meaningless, but it is encouraging to see that the average sales price for Fayette County increased during November, although they were still well below previous levels.

Prices in Clayton and Henry Counties have continued to fall. Clayton county continued its months long sloping path downward while Henry County took a nosedive from its momentary crest in October.

When will all of this end? We are still not sure, but we are hoping the market will stabilize next summer with a recovery beginning the following spring. But, that is only our educated guess based on the information we have available at the moment. If you ask 10 experts you will get 10 different answers. Only time will grant rights to the lucky few to say "I told you so."

2007 Average Home Sales Prices:: South Metro Atlanta: Clayton County: Fayette County: Henry County

Chris on 2007-12-02 @ 06:47 PM EST [link]



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Recent Entries

04/09/2008: Real Estate Market Report: February & March, 2008
02/11/2008: Spring is Near! Time for Open Houses!
02/11/2008: A Little Help During Hard Times
02/11/2008: HUD Homes Now Available
02/03/2008: Home Marketing Time at 12 Month High
02/03/2008: Must See to Appreciate! Near Southlake Mall.
02/03/2008: Great Investment House or First Time Buyer Home
01/27/2008: Efficiency Apartments in Forest Park
01/27/2008: A Piece of Heaven Nestled outside of Hampton, Georgia.
01/27/2008: Conveniently Located Townhome
01/27/2008: Four-Sided Brick with Fireplace
01/17/2008: Historic Downtown Jonesboro Office Building
01/17/2008: Commercial Corner Lot - Jonesboro, Ga
01/17/2008: Private Clayton County Estate
01/17/2008: Four Duplex Buildings in Forest Park
01/12/2008: In-Ground Swimming Pool, Detached Shop and More!
01/12/2008: Commercial Corner in Riverdale Georgia
01/12/2008: Short Sale Opportunity
01/12/2008: Eight Unit Clayton County Apartment Building
01/07/2008: South Metro Sale Prices Increase in December
01/04/2008: College Park Diamond
12/15/2007: Is The Commercial Market Falling Apart?
12/10/2007: Community Youth Benefit a Winner!
12/10/2007: The Foreclosure Effect
12/06/2007: Great News for the Small Multi-Family Marketplace
12/03/2007: Art Contest Decided by the Flip of a Coin
12/02/2007: Mixed Reviews for South Metro Atlanta
11/12/2007: We Trunked, They Treated!
11/10/2007: Make a Difference in the Life of a Child

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